Zee Entertainment shares rise 5% as shareholders reject proposal to reappoint Punit Goenka as director

Zee Entertainment shares rise 5% as shareholders reject proposal to reappoint Punit Goenka as director

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Zee Entertainment Enterprises Ltd (ZEEL) shares rose 5% on November 29 a day after shareholders rejected proposal to reappoint Punit Goenka as director.

The media firm's shares rose over 5% to Rs 132.69 apiece on November 29.

In a regulatory filing by the company on November 28, ZEEL said that the resolution for the reappointment of Goenka was defeated in the annual general meeting (AGM) of the company.

Resolution number three in the AGM, which proposed the reappointment of Goenka as director, was supported by only 49.54 per cent of the total number of votes cast while 50.4 per cent voted against the resolution.

"Resolution No. 3 (Goenka's reappointment) failed to get the requisite majority of votes as required under the provisions of the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," ZEEL said.

This is a major setback for Goenka who is currently the CEO of the company. Several proxy firms had earlier advised the shareholders to vote against resolution number three.

However, the three other resolutions for adopting the financial statement for FY'24, declaring a dividend, and ratification of remuneration to cost auditors were passed.

"Except for resolution number three, all the aforesaid resolutions were passed with requisite majority," it said.

The Companies Act, 2013, mandates a simple majority of (50 per cent plus one) votes to pass an ordinary resolution at an annual general meeting.

Earlier this month Punit Goenka, had resigned from the post of managing director of ZEEL. However, he continued as CEO of the media and entertainment major. He had also withdrawn himself from reappointment for the said post in the AGM.

While sharing Goenka's resignation letter to exchanges last week, Zee Entertainment said he is "withdrawing his consent for his re-appointment as managing director of the company as proposed in the notice of the ensuing annual general meeting".

On October 18, the board of ZEEL approved the proposal for Goenka's reappointment for a five-year term, effective from January 1, 2025, to December 31, 2029.

With inputs from PTI